When handing a check to a taxpayer, what is the best practice?

The best practice when handing a check to a taxpayer is to verify their identity and have them sign a receipt. This approach establishes a secure and accountable process, ensuring that the check is given to the correct individual and reducing the potential for fraud or errors. By verifying identity, you confirm that you are dealing with the right person, which helps protect both the taxpayer and the institution from possible identity theft or misunderstandings related to the transaction.

Having the taxpayer sign a receipt not only serves as proof of receipt but also creates a record that can be referenced later, should any issues arise regarding the payment. This practice complies with various regulatory requirements aimed at maintaining the integrity of transactions and safeguarding sensitive financial information.